Two Key Problems Settled in Master Plan for South-to-North Water Transfer Project

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Last updated at: (Beijing Time) Wednesday, December 12, 2001

Two Key Problems Settled in Master Plan for South-to-North Water Transfer Project

Monday passed the experts' demonstration on the two tasks, namely "Construction and Management System of South-to-North Water Transfer Project" and "Analysis and Study on Water Price of South-to-North Water Transfer Project" in Beijing. So far, all the 12 topics of the master plan for South-to North Water Transfer Project have been completed and passed experts' assessments.

Model Pattern Nailed Down

The two key problems to the success of the Project lie in forming a construction and management mechanism and reasonable water price.

The study on the two topics carried out by the Development Center of Ministry of Water Resources nailed down to the model pattern of "macro-control by the government, operation by joint-stock system, enterprise management and participation of water users" for the Project.

"Investors Benefit", "Users Invest"

The subject pointed out under the condition of state-funded projects in which the country owns the stock and seeks unified coordination, the macro-regulating function of the government plays a decisive role. Local places possess corresponding utility right for water resources according to their investment proportion and stock possession. It reflects the principle of "investors benefit" and "users invest".

The task called to set up system of corporation responsibility through authorized operation and adopt enterprise management so as to realize a virtuous cycle and accomplish ensured-value and added value of state-owned assets. As direct beneficiaries, water users will participate in investment, management and coordination and enjoy "the right to know" and the superintendence.

Reasonable Water Price Expected

According to the person in charge of the task, a quasi-market for water transaction has taken shape on a large scale for the South-to-North Water Transfer Project, a water-supplying project.

A reasonable water price is the economic foundation for promoting the benefits of the project and realizing a virtuous cycle. Using foreign and domestic successful experiences as reference and taking the affordable level of users into consideration, the task group adopted the method of cost apportioning and decided that the complete water price would be composed of resources price, engineering price and environment price.

Reform Undertaken

A reform of water price system has been put underway to promote water saving, improve rate of utility, prevent and harness water pollution and improve ecological environment and realize optimizing deployment of water resources so as to guarantee a sustainable usage of water resources.

South-to-North Water Transfer Project

The preparation work of the South-to-North Water Transfer Project has met the technical requirements for the start of construction in 2002. The project, which grew from a strategy first bandied about in 1958, aims to divert water from the south to the north of China soas to ensure the water supply for farming and industry there.

Three Routes

The project will have three water diversion routes, namely the East Route, Middle Route and West Route, after 40 years of investigation and analysis. The three planned water diversion routes are designed to connect the Yangtze with the three largest rivers in the north - the Yellow, the Huaihe and the Haihe rivers.

Investment

More than 100 billion yuan (US$12 billion) will be invested in construction of the east and middle water-diversion routes stretching for 2,400 kilometers. The west line is still in the planning stages.

Crucial for Water Shortage

It is expected that 4.1 billion cubic meters of water will be saved annually in the diversion areas of the Middle Route and East Route. Pollution control is focused on the East Route.

By PD Online staff member Du Minghua

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